BIOVALE ENERGIA:YOUR PARTNER IN BRAZIL AND RET PROSPECTS www.biovale.teiaslive.net
cluster of skills The strategy of BioVale is tocluster the various stakeholders ofthe biodiesel sector, organizing STRATEGYand aligning them inentrepreneurial design. INNOVATION PRODUCTIVITYThe great opportunity is to clusterthe best capabilities andresources to the benefit of the PERFORMANCE BIODIESEL ECONOMIC COMPOSITIONpartners and shareholders of spin- CLUSTERoff companies. BUSINESS Therefore, the innovation and CLIMATE SPECIALIZATIONintellectual capital is BioVale´smain asset, holding skills in Brazil COLABORATIONand abroad to make out turn-keybiodiesel projects.
linking the stakeholdersThe main objective of the Hub is to bring capabilities of the variousstakeholders involved in the bio-diesel production chain, both in Brazil andabroad providing resources and diffusing knowledge to the linked firms.The benefits provided through such linkages are of great significance becauseof the complimentary capabilities among the stakeholders. Linkages with foreign organizations can be a great driver of dynamism andcompetitiveness to develop effectively and rapidly the Brazilian bio-dieselprogram. The foreign firms benefit from linkages are reduced costs, localmarket and product intelligence and enhanced assets (UNCTAD 2001).MINASINVEST´s interventions, as a leading IPA (Investment promotion agency)are important to the extent that investors believe that an enterprising IPA canassist them in identifying and introducing reliable local firms andorganizations with whom the investors can partner.The linkage envisages upgrading domestic enterprises; facilitating thetransfer of technology, knowledge and skills; improving business andmanagement practices; and facilitating access to finance and markets.
Biodiesel - a Mutual Profitable Partnership As oil prices and environmental concerns have risen in the past few years, investment in new biofuel facilities has mushroomed in Brazil. The Brazilian National Program for use and production was incorporated in the Brazilian energy matrix by Law nr 11.097/2005 . Large trans-national corporations, as ADM, have already started investing in biodiesel projects in Brazil The crop area required to produce the blend of initial mandatory 2% of biodiesel will be 1.5 million hectares, equivalent to only 1% of the total acreage under crops or available for agriculture throughout Brazil (150 million hectares).BIOVALE ENERGY: YOUR PARTNER IN BRAZIL – FROM INCEPTION TO CONCEPTION
Possible partners Countries : Companies : Bearing high agricultural Having to meet social andproduction costs environment responsibilities Bearing internal/external Bearing environment liabilitiesobligations of emission reduction(Kyoto Protocol and other Willing to attract SRIcompromises) and valuing their stock prices Bearing scarcity of cultivation Bearing intensive need of fuellands sources Willing strategic alternatives Investors in prospective highfor vegetable oil and diesel supply return SRI BIOFUELS: FUTURE´S MOST PROSPECTIVE INVESTMENT
cooperation/partnershipPossible areas of interest:Utilization of Partners technology for biodiesel plants inbuilding, logistics, utilization of glycerin and other by-products, specification, engine tests, etc.Sale of carbon credits (MDL) obtained through theutilization of biodiesel in Brazil.Export of vegetal oil and biodiesel to Partner´s country.Exploitation of the potential domestic market
BioVale contributionsGENERAL CORPORATE ACTIVITIES General coordination among the various stakeholders Resources (financial and management) Industrialization: oil extraction and transesterification Logistics (sales, distribution, export process, shipping)GENERAL CONSULTING ACTIVITIES turn-key/Global solution in Biodiesel projects Research & Development Institutional and Government support Project development, Project Financing an Funding International product commercialization Logistics (sales, distribution, export process, shipping)
professional managementImplementation goals Internal External capabilities capabilities Professional POOL monitoring Roles of strategies stakeholders Resources Action plan management BioVale Energy: your partner in Brazil.
Market scenario and prospects the price of crude oil tripled between early 2002 and mid- 2005 while natural gas reaches a level six times greater than ten years earlier. Source: GTZ/WorldWatch Institute
The growing gap energy companies have not invested in building enough refinery capacity to meet the growing level of companies have world demand. World oil production has gone up by 40% not been able to in the past 20 years while refinery capacity has only find enough new gone up 15%. oil and gas fields to replace the exhausting ones. Oil is being pumped out of the ground three times faster than it is being replaced by new oil finds.the oil reserves discovered between 1950 and 1980 are being run down. Source: GTZ/WorldWatch Institute
Will oil prices rise further?"There are not enough large-scale projects in the developmentpipeline right now to offset declining production in mature oil fieldsand to meet global demand growth beyond 2007". (Chris Skrebowski,the editor of the Petroleum Review ) The total amount of energy that the world gets from oil and gas will begin to decline after 2010. Source: GTZ/WorldWatch Institute
What alternative sources to fill the gap? The global demand for oil is increasing by just over 2%every year at present. This increase in demand added to the gap being createdby the declining supply, implies new energy sources eachyear equivalent to 4-5 per cent of the worlds current oilproduction: around 1,800 million barrels of oil a year. In 2015, when world gas output ceases to increase tomeet the its growing demand , the new energy sourceswould have to increase the annual rate at which they grew by another 900 million barrels. Source: GTZ/WorldWatch Institute
What alternative sources to fill the gap? The only truly sustainable energy sources are those basedon the flow of energy from the sun: solar, hydro, wind,wave, biomass. These flows are very large in comparison with humankindsuse of energy. Renewable sources can therefore meet all the worldsenergy needs, both now and in the future. The amount of energy supplied by renewable sourcescould be 120 times its present level . The problem is to develop these sources quickly enough to fill the gap as it opens up. Source: GTZ/WorldWatch Institute
Biofuels: a Booming IndustryThe world is on the verge ofunprecedented growth in theproduction and use of biofuels , byvirtue of: Rising oil prices, national securityconcerns, the desire to increase farmincomes, and a host of new andimproved technologies . The two most prevalent biofuels areethanol and biodiesel.World production of ethanol morethan doubled between 2000 and 2005,while production of biodieselquadrupled.
RET OPPORTUNITIES Renewable energy will have to supply a greater share of the worldsenergy requirements. It is estimated that the market for clean energy technologies couldbe worth $1.9 trillion by 2020. The financial sector has a key role toplay in developing and promoting this market. In the next 25 years, the world will consume all that has beenproduced in fossil oils so far. The world´s dramatic increment for fuels should be supplied by bio-fuels. In the future, In the short run, ETHANOL and BIO-DIESEL are themain bio-fuels. Renewable energy is both a solution and a business opportunity; BUSINESS AS AN AGENT OF WORLD BENEFIT
Brazilian ethanol´s use and production PRODUCTION CAPACITY: 18 billion liters/yearPRODUCTION: 15 billion liters/year (seed/2004/2005)EXPORTATION: 2.4 billion liters in 2004SUGAR CANE PLANTED AREA: 5.6 million hectaresPOTENTIAL FOR AGRICULTURAL EXPANSION IN BRAZIL: 90 million hectares of arable lands – Without any forest removalINTEGRATED PRODUCTION OF SUGAR AND ETHANOL: Provide production flexibilityUTILIZATION OF ETHANOL IN VEHICLES IN BRAZIL: Automobiles, light commercials, motor-cycles and aircrafts Flexible Fuel light vehicles: reached 37% of internal market sales in 2005
Brazilian domestic market projection Law 11 097/2005: it sets forth a mandatory use of biodiesel mixture to diesel, which reflects in the following prospects 2020 2020 20% 12,4 12,4 billions billions liters/year liters/yearSource: MME
Brazil’s export potentialWith the launch of commercial production, Brazilbecomes a potential exporter of biodiesel.The EU aims to ensure that 2% of all the fuel consumedin the region is renewable by 2005, but it has limitedacreage available for growing rapeseed, the mainfeedstock produced in Europe, and industrial capacity isinsufficient to meet the stipulated demand.Despite these constraints, the proportion of renewablefuels is set to reach 5.75% by 2010 according to EUDirective 30, ratified by the European Parliament in May2003.Given the limitations for production growth in Europe,Brazilian biodiesel enjoys an unprecedented opportunityto build market share in the continent Europe.
Making the project workableMarket Structure & Strategic FUNDINGsight skills alliances EFFICIENT MANAGEMENT Applied Technological planningmethodologies innovation Competitiveness and sustainability